In 2024, the Irish government introduced new regulations known as the Circular Economy (Waste Recovery Levy) Regulations. These rules are set to significantly impact how construction and demolition (C&D) waste is handled and could bring about additional costs for developers. If you’re a developer, it's essential to understand the implications of this levy so you can manage your projects and budgets effectively.

What Is the Waste Recovery Levy?

The waste recovery levy is a charge applied to waste that is processed for recovery rather than disposed of in landfills. Recovery can include operations like incineration, backfilling, gasification, or even exporting waste for treatment abroad. The levy applies to two main categories of waste:

• Municipal waste: Everyday waste from homes, offices, etc.

• Construction and demolition (C&D) waste: Waste from building sites, renovations, and demolitions.

What Does This Mean for Developers?

From January 2025, C&D waste will no longer be exempt from this levy, meaning developers will now be liable for additional costs. Here’s what you need to know:

1. Levy Amount: The levy is set at €10 per tonne of C&D waste that is recovered. This may seem small, but on large construction projects, it can quickly add up, especially with high volumes of waste.

2. Where and When It Applies:

• From January 2025, this levy will apply to C&D waste recovered at municipal landfills.

• From September 2025, the levy will apply to recovery sites handling over 200,000 tonnes of waste.

• From March 2026, even smaller recovery sites (under 200,000 tonnes) will be subject to the levy.

3. Types of Waste Operations Covered:

• Incineration plants (both waste-to-energy and co-incineration plants)

• Waste used in site restoration, backfilling, and landfill engineering

• Waste exported abroad for recovery

• Gasification or pyrolysis treatments

How Will This Affect Your Projects?

The most obvious impact will be the increase in costs associated with handling C&D waste. If your project generates a significant amount of waste, these levies will eat into your budget, especially for large-scale developments. Planning ahead for these costs will be crucial.

Developers will also need to pay closer attention to how waste is managed on-site:

• Ensure that your waste recovery contractor is licensed and compliant with the regulations.

• Make use of digital reporting tools to track the volume of waste recovered and ensure that you're only charged once for each recovery.

Additionally, for any waste that is exported for recovery, you or your waste management provider will be responsible for paying the levy.

Why Is This Levy Important?

This levy is part of a broader effort to support the circular economy in Ireland, where materials are reused, recycled, or recovered instead of being dumped in landfills. It’s designed to encourage developers to minimize waste, reuse materials where possible, and think more sustainably about the end life of construction materials.

The regulation also helps ensure that waste is accounted for and handled in a way that supports environmental goals. With growing pressure on developers to meet sustainability targets, having a solid waste management plan in place will be essential for both compliance and maintaining a positive reputation.

Key Takeaways for Developers:

• Plan ahead: Include the cost of the waste recovery levy in your project budget.

• Think sustainably: Consider waste reduction and material reuse strategies to minimise your exposure to the levy.

By understanding the new waste recovery levy, developers can stay ahead of the curve, avoid unexpected costs, and contribute to Ireland’s sustainability goals. The changes are coming soon—January 2025 is just around the corner, so now is the time to start planning.